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Southern European Exploration extends work with partner in Serbia at Vranjska Banja

Spa clinic at Vranjska Banja, Serbia (source: vrnjacka-banja.co.rs)
Alexander Richter 10 May 2010

Reservoir Capital Corp. wholly-owned subsidiary, Southern European Exploration D.o.o. ("SEE") has signed a Business and Technical Cooperation Agreement (the "Agreement") with Jumko A.D. ("Jumko"), to evaluate the existing geothermal wells operated by Jumko, within the Company's Vranjska Banja exploration permit located in Southern Serbia.

In an announcement, “Reservoir Capital Corp. reports that its wholly-owned subsidiary, Southern European Exploration D.o.o. (“SEE”) has signed a Business and Technical Cooperation Agreement (the “Agreement”) with Jumko A.D. (“Jumko”), to evaluate the existing geothermal wells operated by Jumko, within the Company’s Vranjska Banja exploration permit located in Southern Serbia.

Jumko holds a two hectare exploitation permit with two geothermal wells (VG-2 and VG-3) that were drilled for district heating of an industrial complex. The VG-2 well intercepted several hot water aquifers, the best of which measured 126 degrees centigrade between 864-890 metres depth. The VG-3 well intercepted a zone containing three intervals with measured temperatures of 124 degrees centigrade, between 1,500 and 1,575 metres depth. Under the terms of the Agreement, the Company has an exclusive one-year period to complete detailed technical and feasibility studies.

The Company’s Vranjska Banja exploration permit covers 1,750 hectares in area and completely surrounds the Jumko permit. Since receiving the exploration permit in November 2009, the Company has used existing geophysical data (magnetics and gravity) to define target areas and this March began detailed magnetic surveys, mapping and water geochemistry studies.”

Source: MarketWatch